11 Chinese loans driving Nigeria’s transportation system from 2010 – 2023

Nigeria’s commitment to modernising its transportation infrastructure has seen significant financial backing, primarily from Chinese lenders, mainly from Export-Import Bank of the Republic of China (CHEXIM) and China Development Bank (CDB), over the past decade and beyond.

These strategic investments are not just about concrete and steel; they are about transforming the nation’s connectivity, driving economic growth, easing the movement of people and goods, and fundamentally reshaping the lives of millions.

According to Global development policy center, here are 11 Chinese loans driving Nigeria’s transportation from 2010 – 2023

Railway modernisation, Idu – Kaduna, project 1 (187km) – $500 Million
Kicking off a new era of rail development, the China Export-Import Bank (CHEXIM) provided $500 million for railway modernisation, Idu Kaduna, Project 1 in 2010, a crucial project. Completed and operational, this modern rail line dramatically cuts travel time between the federal capital, Abuja, and the major northern commercial hub of Kaduna, fostering trade, reducing road traffic strain, and offering a safer, more comfortable travel alternative for thousands daily.

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Abuja Light Rail Project (78km) – $500 Million
Revolutionising urban transit within the capital city, the Abuja Light Rail received $500 million from Export-Import Bank of the Republic of China (CHEXIM.) in 2012, which commenced operations, aims to ease the notorious city congestion, connect key areas like the airport and the city center, and provide a reliable mass transit system crucial for a rapidly growing metropolis.

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Airport expansion (4 Terminals) – $500 Million
In 2013 Nigerian government took a loan from China to take a significant step towards upgrading air travel facilities. CHEXIM allocated $500 million for the expansion and modernisation of four key airport terminals across the country. These upgrades are vital for accommodating increasing passenger traffic, enhancing airport efficiency, and improving Nigeria’s standing as an aviation hub in West Africa, contributing directly to tourism and international trade.

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Lagos-Ibadan railway, modernisation, Project 2 – $1.3 Billion
A monumental investment, CHEXIM provided a substantial $1.3 billion loan in 2017 for the modernisation of the Lagos-Ibadan railway line. This critical artery, now fully operational, directly links Nigeria’s economic heartbeat (Lagos) with the bustling commercial and agricultural city of Ibadan. It has become a game-changer for freight movement, reducing logistics costs, and providing a highly popular, safe, and efficient passenger service, significantly easing pressure on the often-congested Lagos-Ibadan expressway.

Abuja-Keffi-Makurdi road, rehabilitation and upgrade (227km) – $460 Million
Improving vital road networks, CHEXIM disbursed $460.8 million for the rehabilitation and upgrade of this 227-kilometer stretch in 2017. This project is crucial for inter-state commerce and travel, enhancing agricultural produce distribution from the central belt to markets, and improving connectivity between the Federal Capital Territory and the North-Central region, reducing travel time and vehicle wear.

Lafia bypass road and dualization of 9th mile (Enugu) – Otukpo – Makurdi road (268.5km) – $845 Million
Further bolstering road infrastructure, in 2017 the CHEXIM provided $845.8 million for this extensive project. The dualisation and bypass facilitate smoother traffic flow, significantly reduce journey times, and enhance safety along a critical corridor that links the South-East to the North-Central regions, directly impacting trade routes and local economies along its path.

Rolling stocks and depot equipment purchase, Abuja light rail – $157 Million
Ensuring the smooth and efficient operation of the Abuja Light Rail, CHEXIM supplied $157 million for the acquisition of essential rolling stock (trains) and depot equipment. This investment was critical for making the light rail system fully functional and sustainable, providing the necessary assets for regular service, maintenance, and future expansion.

Lekki deep water port – $629 Million
The 2019 loan from China Development Bank (CDB) was a game-changer for Nigeria’s maritime sector, with a contribution of $629 million towards the development of the Lekki Deep Water Port. This state-of-the-art facility, a true landmark project, is poised to significantly decongest Lagos’s existing ports, handle larger vessels, and transform Nigeria into a major transhipment hub in West Africa, boosting import/export efficiency and attracting massive foreign direct investment.

Airport expansion (4 Terminals), Incremental Project – $208.9 Million
Continuing the momentum in aviation infrastructure, still in the same 2019, CHEXIM bank provided an additional $208.9 million for the incremental expansion of four airport terminals. This phase builds upon the initial expansion, ensuring that Nigeria’s international gateways can handle projected growth in air travel, offering improved passenger comfort, faster processing times, and enhanced security features, crucial for a nation with a burgeoning middle class.

Airport Expansion (4 Terminals), ancillary project – $183.6 Million
Complementing the main airport expansion efforts in 2019, CHEXIM allocated another $183.6 million for ancillary projects related to the four terminals. These critical supporting works, which might include taxiways, aprons, control towers, or utility infrastructure, are essential for the overall operational efficiency and safety of the expanded airports, ensuring the complete functionality of the upgrades.

Lagos-Kano railway (1400km), Kaduna-Kano section (200km) – $973 Million
Looking towards the future, the CDB committed $973 million for the Kaduna-Kano section of the ambitious Lagos-Kano Railway. This 200-kilometer segment is a crucial part of the larger 1400-kilometer vision to connect two of Nigeria’s most economically significant regions by modern rail. Once completed, this line promises to revolutionize freight and passenger transport between the commercial South and the agricultural North, driving down transportation costs, opening new markets, and fostering national integration on an unprecedented scale.